Tesla and Apple are both part of the famous  Magnificent Seven, the top-performing giants of the U.S. stock market. These companies have been investor favorites for years. But right now, Wall Street analysts have a clear favorite. According to them, Apple is the better buy, while Tesla might see a slight drop. Here’s a deep dive into both companies, what they’re doing, what analysts expect, and what makes each one exciting or risky.

Tesla: Big Dreams, Bold Moves, but Short-Term Doubts

Out of 57 analysts following Tesla, the median target price is $307 per share. That means they expect the stock to fall about 4% from its current price of $320. So, why are some investors still holding on?

Tesla’s future potential lies in three big areas:

  • Electric Vehicles (EVs)
  • Self-Driving Technology
  • Humanoid Robots

Recently, Tesla lost some EV market share. One reason is Elon Musk’s involvement in politics, which hurt the brand’s image. But things may improve when more affordable Tesla models launch later this year. Also, Musk has said that his time spent on DOGE will reduce significantly in May, which might help clean up the company’s public perception.

Here’s the exciting part Tesla is launching its first autonomous ride-hailing service in Austin next month. This market is currently dominated by Alphabet’s Waymo, but Tesla has a different approach. Unlike Waymo, which uses a mix of cameras, lidar, and radar, Tesla’s Full Self-Driving (FSD) system only uses cameras, which could make it cheaper and scalable. Musk even claimed that Tesla might eventually take 99% market share or something ridiculous.

Tesla is also pushing into robotics. The company is working on an autonomous humanoid robot called Optimus. Tesla plans to have thousands of these robots working in its own factories this year, improving productivity. Even more exciting, they might start selling Optimus to other businesses in the second half of next year.

Wall Street expects Tesla’s adjusted earnings to grow 15% annually through 2026. Still, the current valuation of 140 times earnings seems very high. But that’s because most analysts haven’t factored in the future revenue from self-driving tech and robots since big profits from those may still be years away.

For perspective: Ark Invest predicts autonomous ride-sharing platforms could generate $4 trillion in revenue by 2030. Citigroup expects humanoid robots to bring in $1.1 trillion by 2040. If those predictions come true, Tesla’s growth could skyrocket. That’s why long-term believers in Tesla’s vision might want to stay invested.

Apple: Steady Strength, Smart Brand and Future Potential

Apple is loved for its strong ecosystem, especially in smartphones. Out of 50 analysts, the median target price is $236 per share, which suggests a 14% upside from the current price of $207.

What makes Apple a powerhouse?

The company’s real strength is its premium brand and deep integration of hardware and software. For example, the average iPhone costs more than twice as much as the average Samsung smartphone. And once someone buys an iPhone, they often spend more on Apple’s other services  like iCloud storage, App Store purchases, advertising, and Apple Pay.

Now, Apple is aiming to grow through AI with something called Apple Intelligence. It’s a new feature set that brings smart automation to everyday tasks like photo editing and writing emails. So far, this hasn’t created big excitement, but that may change when Apple launches a much smarter version of Siri later this year.

Still, Apple faces some challenges:

Even though the company has shifted some iPhone production to India, most high-end models are still made in China. That could lead to tariffs and higher costs.
There’s also an antitrust lawsuit that might stop Apple from getting paid by Google for putting Google Search as the default in the Safari browser.

Analysts expect Apple’s earnings to grow at 6% annually through 2026. With a valuation of 30 times earnings, the stock looks a bit expensive. The writer even mentions that they think Apple is overvalued right now, but they might reconsider if AI monetization grows or if tariffs aren’t as bad as feared. For now, though, they’re staying away from the stock.

Which Stock Wins?

Wall Street clearly favors Apple over Tesla for the next 12 months, thanks to its solid business and stronger short-term outlook. But Tesla’s long-term potential in AI, self-driving, and robotics could make it a high-reward investment, especially for those who believe in its bold future.

In simple terms:

  • Choose Apple if you want stability and moderate growth.
  • Choose Tesla if you believe in tech revolutions and have patience.

No matter which one you go for, both companies are shaping the future in their own ways.